Required information Exercise 13-9 Analyzing risk and capital structure LO P3 [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Curront YE 1 Yr Ago 2 Yrs Ago At December 31 Assets Canh Accounts receivable, net Merchandise inventory Prepaid expenses Plant annetu, not Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilition and oquity $ 29,997 88,696 109,310 9,758 275, 795 $513,556 $ 36, 126 $ 34,734 63,221 47,744 B2, 722 50, 848 9,018 4,018 251,634 224,356 $ 442,721 $ 361,700 $129,154 $ 76,316 $ 46,790 94,618 162,500 127,284 $513,556 101,826 81, 534 162,500 162,500 102,079 70,876 $ 442,721 $ 361,700 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Current Yr $667,623 5407,250 206,963 11,350 1 Yr Ago $ 526,038 $342.445 133,290 12,112 CD The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cont of good old Other operating expenses totest expense Tacone tax expense total costs and expenses Net Income Caroingo por share Current $667,623 $402,250 206,963 11.350 8,629 634.242 $133,201 2.05 1 Yr Ago $ 526,838 $342,445 233,290 12112 7.903 495,255 31,003 1.91 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 3 (3-a) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 38 Times Interest earned Times Interest Earned Choose Numerator: Income before interest and income tax Times Interest Earned Times Interest earned Choose Denominator: Pinterest expense $ S Current Year: imes 11,350 12,117 1 Year Ago # times